The Italian stock exchange, seeking to reassure investors after a run of scandals that culminated in the spectacular collapse of the food group Parmalat two years ago, unveiled a new disciplinary code Tuesday aimed at strengthening corporate governance among listed companies.
The nonbinding rules, which the exchange wants to pressure Italian firms to accept, call for companies to limit the number of boards on which their directors can sit.
The code also asks companies to define what constitutes an independent director, to provide information on how board members are nominated, and to introduce in some cases a figure called the lead independent director who would coordinate the work of a firm's independent directors.
The code also asks companies to explain clearly the role played by internal committees set up to fight fraud, and it encourages better contact with investors to favor their participation in shareholders' meetings.
See full Article.
Posts
